The gross domestic product (GDP) of the Netherlands fell by 0.3 percent quarter-on-quarter in the second quarter of 2023, according to preliminary data from the Dutch statistical office (CBS). The eurozone’s fifth-largest economy was also in the red in the first quarter. So we are dealing with a technical recession in the Netherlands.
CBS on Wednesday released its first gross domestic product estimate for the second quarter of 2023. As reported, in the period from April to June economy the Netherlands contracted by 0.3%, while in the first quarter the decrease was 0.4%.
Technical recession in the Netherlands
Thus, the country found itself in a technical recession, emphasized the office, while pointing out that it was “light” for the time being. The economy of the Netherlands is the fifth largest in euro area.
The data surprised analysts. The market consensus, i.e. the median forecast of analysts polled by Bloomberg, assumed an increase of 0.2 percent.
“It’s not quite a classic recession. It’s not like the Netherlands suddenly found itself on the brink of an economic precipice with massive bankruptcies and massive unemployment,” said Peter Hein van Mulligen, chief economist at CBS. In his opinion, this is only a mild recession caused mainly by lower consumption expenditure and increased interest rates.
Consumer spending fell by 1.6% and exports fell by 0.7%. lower than in the first quarter of this year.
“I hope the situation will improve, because we have solid foundations such as low unemployment and high investment,” commented the latest economic secretary Micky Adriaansens, quoted by the Financieele Dagblad daily.
Inflation in the Netherlands fell from a peak of 14.5 percent. year-on-year in September last year, but remains relatively high. Price increase in the second quarter of this year averaged around 6% year on year.
Second estimate regarding GDP in the second quarter of this year will be published on September 22.
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